Social Procurement in Security: What It Means for Victorian Buyers

INDUSTRY INSIGHT

Social Procurement in Security: What It Means for Victorian Buyers

How Victoria’s Social Procurement Framework affects security service contracting — and why choosing the right provider can help meet your social procurement obligations.

Key Takeaways
  • Victoria’s Social Procurement Framework (SPF) requires government agencies to consider social and sustainable outcomes when buying goods and services.
  • Security services are a significant spend category — choosing an SPF-aligned provider helps agencies meet reporting obligations.
  • Key SPF outcomes in the security context include opportunities for disadvantaged Victorians, engagement with Aboriginal businesses, and social enterprise engagement.
  • Buyers should request a social procurement statement from security providers before contract award.

What Is the Victorian Social Procurement Framework?

The Victorian Social Procurement Framework (SPF), administered by the Department of Treasury and Finance, requires Victorian Government departments, agencies, and prescribed entities to use their purchasing power to generate social and sustainable outcomes beyond the immediate transaction.

In practice, this means that when a Victorian Government agency contracts for security services, the procurement decision must account for:

  • Opportunities for disadvantaged Victorians — including people with disability, long-term unemployed, and those leaving the justice system
  • Gender equality — providers with demonstrable commitments to gender pay equity and advancement of women
  • Sustainable and responsible business practices — including Modern Slavery Act compliance and ethical supply chains
  • Opportunities for Aboriginal Victorians — engagement with Aboriginal businesses and employment of Aboriginal Victorians
  • Engagement with social enterprises and disability enterprises

Why Security Spend Matters for Social Procurement

Security services are among the larger discretionary spend categories for Victorian Government facilities. A typical mid-size government facility may spend $200,000–$500,000 annually on security services. This scale creates significant leverage.

Security is also a labour-intensive industry — most of the contract value goes directly to officer wages. Choosing a provider that invests in its workforce, pays at or above Award rates, and actively recruits from priority cohorts can generate measurable social outcomes at relatively low administrative cost to the buyer.

The security industry has historically been a pathway to employment for people facing labour market barriers, including veterans, people with lived experience of the justice system, long-term unemployed individuals undertaking Certificate II or III in Security Operations, and new migrants and refugees with relevant prior security or policing experience.

What to Ask Security Providers About Social Procurement

1
Do you have a social procurement or workforce diversity policy? Ask for the document. A genuine commitment will be in writing, with specific targets and accountability mechanisms.
2
What percentage of your workforce comes from priority cohorts? Priority cohorts include people with disability, Aboriginal and Torres Strait Islander people, long-term unemployed, and people exiting the justice system.
3
Do you pay above the Security Services Award minimum rates? Above-Award wages reduce officer turnover, improve service quality, and contribute to economic inclusion outcomes.
4
Are you Modern Slavery Act compliant? For contracts above $100,000, the Commonwealth Modern Slavery Act 2018 reporting obligations may apply. Ask whether the provider has mapped their supply chain.
5
Do you engage with Aboriginal-owned businesses in your supply chain? This might include uniform suppliers, equipment providers, or training providers that are Aboriginal-owned or operated.

Frequently Asked Questions

Does the Social Procurement Framework apply to private businesses?

The Victorian SPF is mandatory only for Victorian Government agencies and prescribed bodies. However, many private organisations — particularly ASX-listed companies and large NFPs — have adopted voluntary social procurement policies that mirror the SPF framework.

At what contract value do SPF obligations apply?

The SPF applies to all Victorian Government procurement. However, reporting and documentation requirements are proportionate to contract value. Contracts above $1 million attract the most rigorous requirements, including mandatory social procurement targets and annual reporting.

Can social procurement criteria be a scored criterion in a security RFT?

Yes. For higher-value contracts, it is appropriate to include a scored social value criterion, typically weighted at 5–15% of the overall evaluation. This must be disclosed in the RFT documentation and applied consistently to all responses.

The Security Industry’s Social Procurement Opportunity

The security industry sits at an interesting intersection of social procurement considerations. It is a large employer, it provides entry-level pathways into the workforce, and its service delivery is fundamentally local — officers must physically be in the location where they work, which means employment benefits accrue locally.

Workforce Development in the Security Sector

In Victoria, entry-level security roles typically require a Certificate II in Security Operations and the relevant licence from Victoria Police’s Licensing and Regulation Division. The licensing pathway is accessible to people with limited prior qualifications, making security a genuine entry point for workers who face barriers to professional employment.

From a social procurement perspective, this means buyers can make meaningful impact by:

  • Preferring providers who invest in training programs for licence candidates from priority cohorts
  • Requiring providers to report on their workforce’s demographic composition
  • Including questions about career progression and above-Award wages in procurement evaluation
  • Asking about partnerships with TAFE providers, employment services, or community organisations that support the transition of disadvantaged workers into the security industry

Indigenous Business Engagement

Indigenous Business Australia and Supply Nation maintain registries of certified Aboriginal and Torres Strait Islander businesses. While the number of Aboriginal-owned security businesses is currently limited, buyers can contribute to growth in this area by:

  • Including Indigenous business engagement as an evaluation criterion in security RFTs
  • Asking security providers about their partnerships with Aboriginal-owned businesses in their supply chain (uniforms, equipment, training, and subcontracting)
  • Connecting security providers with Supply Nation to support supplier diversity development

Modern Slavery Considerations

The Commonwealth Modern Slavery Act 2018 requires entities with annual consolidated revenue over $100 million to report on modern slavery risks in their operations and supply chains. Security services present specific modern slavery risks, including:

  • Below-Award wage payment practices, particularly for overnight and weekend shifts
  • Unlicensed workers engaged through informal subcontracting arrangements
  • Uniforms and equipment sourced from offshore suppliers without ethical supply chain visibility

Buyers can address these risks by requiring security providers to supply a current Modern Slavery Statement and by conducting spot-check audits of worker entitlements as part of contract management.

Legion Security Group provides corporate security, industrial security, mobile patrol, and static guard services to Victorian Government agencies and corporate clients. Learn more about our approach to compliant, licenced security in Victoria.

Discuss Your Security Procurement Requirements

Legion Security Group works with Victorian Government agencies and corporate clients who value compliance, quality, and responsible procurement practices. Learn about our social procurement commitments and diverse workforce.

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